Condonation of delay under section 119(2)(b) of the Income-tax Act, 1961 in filing of Form No. 10BB for Assessment Year 2016-17 and subsequent years

Last updated: 05 November 2020

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The Central Board of Direct Taxes (CBDT) has issued a directive regarding the condonation of delays in filing Form No. 10BB. This applies to trusts, institutions, universities, and hospitals required to file this audit report under Section 10(23C) of the Income-tax Act. For assessment years prior to 2018-19, Commissioners of Income-tax are authorised to admit delayed applications if a reasonable cause is shown, with all such applications to be decided by 31 March 2021. For AY 2018-19 and subsequent years, Commissioners can condone delays of up to 365 days, provided there was a reasonable cause for the delay.

F.No.197/13S/2020-IT A-I
Government ofIndia
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, the 3rd November, 2020

Sub: Condonation of delay under section 119(2)(b) of the Income-tax Act, 1961 in filing of Form No. 10BB for Assessment Year 2016-17 and subsequent years - Reg.

Under the provisions of section 10(23C) of Income-tax Act, 1961 (hereafter ' Act') where the total income, of the fund or trust or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via), without giving effect to the provisions of the said subclauses, exceeds the maximum amount which is not chargeable to tax in any previous year, such trust or institution or any university or other educational institution or any hospital or other medical institution shall get its accounts audited in respect of that year by an accountant as defined in the Explanation below sub-section (2) of section 288 before the specified date referred to in section 44AB and furnish by that date, the report of such audit in the prescribed form duly signed and veri fied by such accountant and setting forth such particulars as may be prescribed.

2. As per Rule 16CC of the Income-tax Rules, 1962 (hereafter 'Rules') the audit report of the accounts of such a fund or trust or institution or any university or other educational institution or any hospital or other medical institution is to be furnished in Form No. 10BB. As per Rule 12(2) of the Rules, such audit report is to be furnished electronically. The failure to furnish such report in the prescribed form along with the return results in disentitlement of such entity from claiming exemption under section I 0(23C) of the Act.

3. Representations have been received by the Board/field authorities stating that Form No. 10BB could not be filed along with the return of income for AY 2016-17 and AY 2017-18. It has been requested that the delay in filing of Form No 10BB may be condoned.

4. Accordingly, with a view to expedite the disposal of applications filed by such entities for condoning the delay and in exercise of the powers conferred under section I 19(2) (b) of the Act, the Central Board of Direct Taxes hereby directs that:

(i) In all the cases of belated applications in filing of Form No. 10BB for years prior to AY. 2018-19, the Commissioners of Income-tax are authori zed to admit such applications for condonation of delay uls 119(2)(b) of the Act. The Commissioner will whi le entertaining such applications regarding filing Form No. IOBB shall satisfy themselves that the applicant was prevented by reasonable cause from filing such application within the stipulated time. Further, all such applications shall be disposed of by 31.03.2021.

(ii) where there is delay of upto 365 days in fil ing Form o. lOBB for Assessment Year 2018-19 or for any subsequent Assessment Years, the Commissioners of Income-tax are hereby authorized to admit such belated applications of condonation of delay under section 119(2) of the Income-tax Act, 1961 and decide on mcrits.

5. The Commissioners of Income-tax shall, whil e entertaining such belated applications in fi ling Form No. lOBB, satisfy themselves that the appl icant was prevented by reasonable cause from filing such application within the stipulated time.

(Prajna Paramita)
Director (ITA-I)

Copy to:-

I. PS to FMlOSD to FMI PS to MoS (R) / OSD to MoS (R)

2. PPS to Secretary(Revenue) p~lr- (Pr J a Paramila) D r clor (ITA-I)

3. The Chairperson, Members and all other officers in CBDT of the rank of Under Secretary and above.

4. All Pro Chief Commissioners/ Pro Director General of income-taxi Chief Commissioner of Income-tax (Exemptions) - with a request to circulate amongst all officers in their regions/ charges.

5. CIT(M&TP), CBDT and Official spokesperson ofCBDT.

6. The Additional Director General CPR & PP), New Delhi).

7. ITCC Division ofCBDT

8. Data Base Cell - for placing it on www.irsofficersonline.gov.in

9. DIT (S) -4/ Web manager for placing it on www.incometaxindia.gov.in

10. 10. The Guard File.

(Prajna Paramita)
Director (ITA-I)

FAQ :

Form No. 10BB is the audit report of accounts for entities like trusts, institutions, universities, and hospitals, as required by Rule 16CC of the Income-tax Rules, 1962.

Failure to furnish the audit report in Form No. 10BB along with the return of income can result in the entity being disentitled from claiming exemption under Section 10(23C) of the Income-tax Act.

For assessment years prior to AY 2018-19, Commissioners of Income-tax are authorised to admit applications for condonation of delay in filing Form No. 10BB.

All applications for condonation of delay in filing Form No. 10BB for years prior to AY 2018-19 must be disposed of by 31 March 2021.

For Assessment Year 2018-19 or any subsequent Assessment Years, Commissioners of Income-tax are authorised to admit belated applications where there is a delay of up to 365 days in filing Form No. 10BB.

In all cases, the Commissioner of Income-tax must be satisfied that the applicant was prevented by a reasonable cause from filing the application within the stipulated time.